Extending the Bush Tax Cuts for all Americans
September 15, 2010
This week, the House and Senate return to the Capitol to complete unfinished business, before returning to the campaign trail. On top of the agenda is debate surrounding the extension of the Bush era Tax Cuts. These tax cuts, enacted in 2001, are set to expire at the end of 2010. Currently, there are two prevailing approaches in each chamber as to how they will tackle renewing all or some of the tax cuts.
In the Senate, Minority Leader Mitch McConnell has already stated that: “Only in Washington could someone propose a tax hike as an antidote to a recession.” McConnell, committed to keeping taxes low in the midst of a recession, has introduced a tax package this week that would make all of the Bush cuts permanent, expand estate tax relief as well as relief of the alternative minimum tax.
Meanwhile, in the House, Minority Leader John Boehner flinched this weekend when it came to voicing his commitment for a full extension of the Bush tax cuts. He has initially offered to extend the current rates for two more years and cover the cost by cutting domestic agencies and the State Department by $84 billion, or 18 percent below current levels. However, if that plan were to fail, he would not stand in the way of only allowing the cuts to continue for those making under $250,000. This fallback position is the same one which many Democrats have begun to advocate for, including President Obama.